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Gold tumbles despite initial gains
Gold saw a strong gap higher at the open, given the perceived rush to safety. However, this has come to an abrupt end, with a sharp move lower upon hitting the 76.4% Fibonacci retracement.
Given the downtrend in place over the past week, we would need to see a break through $1244 to say this selloff is over. As such, despite the expectation of gains in line with safe haven demand, gold continues to look weak, driven by the negative trade seen this morning.